Beijing Datang Power still looking to issue $300 million convertibles

New York, May 14 - Beijing Datang Power Generation Co. Ltd. is still looking to issue $300 million of convertibles bonds but said the plan has been delayed.

As a result, it is asking shareholders to extend the authorization for a further year.

The proposal will be voted on at an extraordinary general meeting on June 30.

The convertibles issuance was originally approved on May 10, 2002 but the authorization expires on May 10, 2003.

The company expects to offer the convertibles to professional and institutional investors. The securities will be convertible in to Class H shares.

Proceeds will be used to finance up to $220 million of imported power plant equipment and to refinance foreign currency borrowings.

The proposed convertible would dilute current class H shareholders' ownership to 24.1% of the company from 27.7%.

Beijing Datang Power said it has been carrying out preparations to issue the convertibles but they are not yet complete. In addition, the outbreak of SARS has resulted in unfavorable market conditions.

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